Aben & Eagle Plains Execute Option on Chico Gold Project, Saskatchewan
Vancouver, BC - Aben Resources Ltd. (TSX-V: ABN) (OTCBB: ABNAF) (Frankfurt: E2L2) (“Aben” or the “Company”) and Eagle Plains Resources Ltd. (TSX-V: EPL) have executed a formal Option Agreement whereby Aben has the exclusive right to earn an undivided 80% interest in the Chico gold project, located 125 km east of La Ronge, Saskatchewan and 40 km south of Silver Standard Resources’ Seabee / Santoy mine complex. Aben may earn an initial 60% interest by incurring $1,500,000 in exploration expenditures, issuing 1,500,000 common shares and making cash payments totalling $100,000 over 4 years. Upon earning this 60% interest in the Chico Gold Project, Aben may elect to exercise a second option to earn a further 20% interest by incurring an additional $2,000,000 in exploration expenditures, issuing 1,000,000 common shares, and making $50,000 cash payments within two years of the date of election.
Eagle Plains recently completed fieldwork on the 2915 hectare property, which consisted of a 661 line-km airborne geophysical survey, mapping, trenching and soil geochemical surveys designed to define high-grade gold targets for upcoming drilling activity. Results of this work were summarized in an Eagle Plains news release dated December 6th, 2016.
Chico property highlights include the presence of a 1.5 km mineralized structural corridor which is confirmed by geophysical surveys, geological mapping and recent soil sample coverage which included numerous highly anomalous samples ranging up to 4.5 g/t gold. Sporadic historical drilling has been completed in the area and has returned high-grade intercepts. Rock samples collected in 2016 by Eagle Plains along this structural corridor ranged from trace quantities to 20.2 g/t gold. Recent work resulted in numerous high-priority drill targets being identified.
The overall objective of the 2016 program was to identify mineralization similar to that at the nearby Seabee and Santoy deposits. The Seabee gold operation has been in continuous production since 1991 and has produced 1.2M ounces of gold from the Seabee and the Santoy deposits. Ore geology at Seabee/Santoy consists of high-grade vein mineralization associated with volcanic and mafic intrusive rocks which have been structurally disrupted by splays of the deep crustal Tabbernor Fault system. The Tabbernor Fault is a 1500 km long regional structure which has been traced from as far north as the Rabbit Lake uranium mine in northern Saskatchewan to as far south as the Black Hills of South Dakota, the latter of which hosts the 40M oz Homestake gold deposit. The shared proximity to the Tabbernor fault and similarities in terms of age and tectonic history to the Homestake and Seabee deposits was the main driving force behind both Eagle Plains’ and Aben’s interest in the Chico property. Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the subject properties.
Chico Project Summary and History
The Chico structural zone comprises a north/northeast-trending 20m- to 150m-wide multi-episodic shear system comprising both ductile and brittle gold-bearing quartz vein systems. Trenching and drilling activities carried out by Corona Corporation and Cameco from 1988 to 1993 defined a mineralized strike length of over 1400m. Trenching by Corona at the Royex showing returned five chip samples greater than 1000 ppb gold with a best (chip) sample of 14.3 g/t gold over 1m (AR 63M06-0034). Follow-up diamond drilling by Cameco near the Royex trench returned five significant intercepts ranging from 0.51 g/t gold over 1.5m, to 36.0 g/t gold over 0.3m (AR 63M06-0041).
Mineralized shear zones and quartz veining that define the Chico zone are hosted in diorite and granite and especially along the sheared contact between these two units. The Chico and the adjacent parallel Ed and Western structural zones are related splay structures off the larger Tabbernor fault system. Despite the significant surface discoveries of gold along these structural trends, mineralization remains largely untested at depth and along strike extensions. Eagle Plains has initiated permitting for future drilling within the property area.
President of Aben Resources Ltd, Jim Pettit comments, “The Company is pleased to add the “Chico Gold Project” to its portfolio of high-value properties. Based on past and recent exploration results, this region of Saskatchewan appears to be on the verge of a renaissance of significant new exploration in the coming years. On top of that, Saskatchewan is considered one of the best mining jurisdictions in the world as ranked by the Fraser Institute. This exciting new project allows the Company to potentially drill through the winter while it is compiling data and permitting for summer work and drilling programs on its BC based Forrest Kerr Project and Yukon based Justin Project”.
Eagle Plains has two common directors with Aben Resources Ltd., each of whom abstained from voting regarding this transaction.
Jarrod Brown, P.Geo., Chico Project Manager for Aben Resources, has reviewed and approved the technical aspects of this news release and is the Qualified Person as defined by National Instrument 43-101.
About Aben Resources:
Aben Resources is a Canadian gold exploration company developing projects in British Columbia’s Golden Triangle, the Yukon and now Saskatchewan.
For further information on Aben Resources Ltd. (TSX-V: ABN), visit our Company’s web site at www.abenresources.com.
Aben Resources has approx. 30 million shares issued and outstanding.
ABEN RESOURCES LTD.
JAMES G. PETTIT
For further information contact myself or:
Aben Resources Ltd.
Toll Free: 800-567-8181
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.